As a foreigner, you’ll need to deal with Business Registration, Accounting & Tax, Visa & Legal affairs, Trademark & Copyright, and other issues if you wish to start a business in China. Here, we will explain everything you need to know about launching a business in China in 2021. Keep reading and follow these steps to set your business in China.
The first step in starting a business in China is to register your company.
The most common way to start a business in China is through a wholly foreign-owned enterprise (WFOE), yet it takes the most time and money to get started. To have your business registered, you’ll need to create a viable business plan and submit it to the government, which must include information such as your location, budget, products, expected number of employees, and predicted revenue.
Accounting and taxation
Following the registration of your WFOE, you will be obliged to keep accounting records in compliance with Chinese accounting standards. It will also be necessary to file taxes on a monthly and quarterly basis. Late submissions are subject to penalties and surcharges. WFOE must additionally apply for an official invoice book and register its tax reporting technique with the local tax authority. Additionally, you will need a professional consultant who has knowledge of how accounting in China works. Accounting services offered by a professional will ensure your company is tax compliant. Click here on accounting services in China and more.
Support for Visas
A working visa, often known as a Z visa, is required in order to live and work in China. The Chinese government has tightened working visa regulations since September 2013, making it more difficult to get a work visa. You may also require supplementary visas and work permits for foreign employees who will work in your WFOE. If you want to start a business in China, you must have a trademark and copyright. If you want your business to succeed in China, you should seriously consider trademark registration and copyright. A China trademark registration for your company’s name, logo, and service marks would be a wise investment. If you want to flourish in China, you’ll need a strong brand identity, and you’ll need to register your trademarks to protect them.
For your WFOE, you’ll need to choose a legal representative. You’ll also need to register this appointment with the relevant State Administration for Market Regulation (SAMR) so that third parties may verify who is allowed to represent the company independently.
In order to set up your business in China, you’ll also need to be familiar with the many sorts of bank accounts available to WFOE, as well as their functions and applications.
Setting up a business may not be very easy but you need to carry out extensive research and familiarize yourself with the processes in order to succeed.